SpiceJet expects unbundling to pay, but waits for norms

SpiceJet expects a “significant" difference to its income from the Government’s decision to allow domestic airlines to charge separately for various services, including preferential seating and checked-in bags.

However, the airline is yet to announce its strategy for what is called the unbundling of services as there are no clear guidelines on this, SpiceJet’s Chief Executive Officer Neil Mills said.

In an exclusive interview to

Business Line , he said: “We have not announced unbundling as it is not full unbundling. Every one has said, ‘yes fine, you can unbundle’. But when other carriers started to unbundle, there was a huge regulatory issue and (they have) not been able to do it. We are waiting to see where the regulatory environment actually settles down.” He said some carriers had unbundled services on the lines of international carriers, but “there has been a huge backlash against them.”

On April 29, the Civil Aviation Ministry allowed five domestic airlines — Air India, Jet Airways, IndiGo, SpiceJet and Go Air — to charge for facilities they provide including checked-in baggage, in-flight meals/snacks/soft drinks, carrying sports gear/musical instruments, or using the airline’s lounge. The only exception is water that is to be provided free of charge.

On May 9, IndiGo introduced IndiGo Seat Plus under which it started charging Rs 500 on its domestic flights for seats in Rows 1, 2, 12 and 13, and Rs 200 for window or aisle seats. It also introduced a charge of Rs 100 for middle seats. The airline, however, was forced to withdraw the scheme.

Low-cost Air India Express informed its travel agents about plans to charge for seating. But the implementation has been put in abeyance.

>ashwini.phadnis@thehindu.co.in